Tampa-based Generation Income Properties sold seven properties for more than $9 million, using the transactions to pay off mortgage debt and cut a preferred equity obligation that stood at about $20 million last year.
The seven properties included six Dollar General stores that sold for $6.246 million on Aug. 24 and a Fresenius property in Chicago that sold for $2.8 million three days earlier. About $4.04 million from the two transactions is expected to go toward preferred equity held by Loci Capital, reducing the obligation to approximately $4 million.
The six Dollar General stores are in Big Spring, Texas; Mount Gilead, Castalia and Lakeside, Ohio; East Wilton, Maine; and Thompsontown, Pennsylvania. GIPR initially agreed to sell those properties and another Dollar General in Litchfield, Maine, for $7.32 million, but it removed the Litchfield property from the transaction in July.
That change reduced the portfolio to six properties and the sale price to $6.246 million. Ahead of the sale, GIPR recorded a $668,649 impairment, reducing the properties’ carrying value to reflect the expected proceeds. The company estimated net proceeds of about $5.87 million after transaction costs, with approximately $2.68 million expected to go toward the Loci redemption.
The remaining $1.36 million of the expected Loci payment comes from the $2.8 million sale of the Chicago Fresenius property. Unlike the Dollar General portfolio, GIPR did not record an impairment on that property.
Together, the sales continue a series of dispositions GIPR has used to reduce debt and redeem the Loci preferred equity. “We have now closed multiple asset sales in rapid succession,” Chief Executive David Sobelman said. “These sales of non-core properties translate directly into debt reduction, significantly advance our effort to repay Loci Capital, and strengthen our balance sheet.”
That repayment effort has reduced the Loci obligation from about $20 million in 2025 to approximately $4 million. In its forward-looking disclosures, GIPR identified its ability to complete the remaining redemption and obtain additional capital on acceptable terms as risks.
Generation Income Properties, which trades on the Nasdaq under the ticker GIPR, is headquartered at 401 E. Jackson St. in downtown Tampa.